GlobalTel Changes Plans

BOCA RATON, Fla. -- GlobalTel IP, Inc. (Pink Sheets: GIPI.PK), announced that it has sold one of its voice over internet (VoIP) soft-switches along with the necessary operating hardware to Interactive Media Technologies, Inc. ("IMT"). In connection with the asset sale, GIPI and IMT agreed to terminate their software support and equipment co-location agreements.

GIPI has also relocated its core IP network, two soft switches and supporting hardware, to the Network Access Point (NAP) of Americas in Miami. The NAP of Americas is a state-of-the-art facility, providing highly secure and reliable services including Co-location and Peering, Managed Services and Dedicated Hosting Services.

Larry Reid, President & CEO of GIPI stated, "The switch and hardware we sold back to IMT did not fit our new business strategy. Due to increased competition and government regulation we have recently determined that the wholesale VoIP termination business is not a business we wish to continue. The asset sale will have a dramatic downward impact on our revenues as wholesale termination accounted for approximately 90% of our historic revenue and all of our existing agents and resellers will opt to find other providers to terminate their VoIP traffic. We intend to focus on potentially higher margin opportunities that we believe exist in the VoIP marketplace and to concentrate on the sale and integration of Voice Interoperability solutions to several vertical markets we have identified. Our current and future plans are based upon utilizing our IP based network which is designed to meet new and emerging VoIP business opportunities as well as our long term goal of providing Voice Interoperability between disparate end points."

GlobalTel